2024-05-05 21:07:28
- Bullish invalidation may result in BNB falling to $561.
- The funding rate and sentiment were negative, suggesting a bearish bias.
binance [BNB] could attempt a breakout based on the 4-hour chart. But AMBCrypto’s analysis showed that this effort may be in vain.
One of the reasons for this prediction is the exponential moving average (EMA). This indicator measures the direction of the trend over time.
At the time of this publication, BNB changed hands at $586. But the 20 EMA (blue) and the 50 EMA (yellow) were in the same place. The EMA positions indicated that bulls and bears were reluctant to direct the price action.
Therefore, BNB could trade within a tight range unless a crossover occurs.
The golden cross gone: the next death cross?
If the 20 EMA crosses the 50 EMA, the price could extender around $593. But that seemed unlikely, as BNB’s next target could be $561, where the last golden cross occurred.
For those unfamiliar, the golden cross is the terminology used to describe a situation where the 20 EMA crosses above the 50 EMA.
Apart from the previous indicator, another suggested by s decay the Cash Flow Index (MFI).
This indicator uses price and volume data to show whether cryptocurrency buying is under pressure or not.
At press time, the MFI decreased to 66.04, indicating that BNB buying volume had decreased. If the reading continues to fall, the bearish thesis could be validated.
However, this AMBCrypto analysis was not the only one that shared this opinion. A look at the data on chain showed that much of the market expects the BNB price to drop.
Bears double down
This was evident from the burdened mind, which was negative at the end of this edition. This negative value shows that the majority of comments about BNB on social platforms were bearish.
As long as this remains the same, it may be difficult to raise the price. On the other hand, if the views on BNB start to turn optimistic, the trend could change.
Furthermore, a look at the funding rate showed that it was at the extreme end of negative territory. The funding rate meant that more traders leaned towards short positions.
If the funding was positive, it would be meant for traders bullish in the currency. In addition, financing also affects the price. As of press time, BNB’s price is down and funding is negative.
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The logical conclusion here is that criminal sellers are aggressive and get rewarded for their jobs.
In a situation like this, BNB could moderate a bullish move and there could be another fall, if spot buyers don’t save the day.
This is an automatic translation of our English version.
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